Dubai: Iraq’s Kurdish Regional Government (KRG) has been ordered by a UK tribunal to pay $1.98 billion (Dh7.3 billion) to Dana Gas, Crescent Petroleum and their consortium partners.
The London Court of International Arbitration (LCIA) issued a second partial final award on November 27 to pay the consortium $1,981,951,322 “for outstanding unpaid invoices for the produced condensate and LPG up to 30th June 2015,” according to a Dana Gas statement issued on the Abu Dhabi Stock Exchange (ADX) on Sunday.
The statement said the award is “final, binding and internationally enforceable”. It did not, however, say when the payment should be made.
The LCIAs November 27 order follows a partial final award by the tribunal on July 2, 2015 confirming the Consortiums exclusive rights to develop and produce gas and petroleum from the Khor Mor and Chemchemal fields for 25 years. The KRG had disputed this.
Dana Gas stated it and its Consortium partners “have invested over $1.2 billion so far and produced over 150 million barrels equivalent of gas and petroleum liquids”.
Earlier this month on November 20, the High Court of England ordered the KRG to pay the Consortium $100 million related to money owed for the development of hydrocarbons in the region.
Other members of the consortium are Austria’s OMV and Hungarian oil and gas group MOL.
Dana Gas shares rose nearly 15 per cent on Sunday to close at Dh0.47 on the ADX following the annoucement of the award.
